National Republican., 1887-12-07


tional finances which imperatively demands
immediate and careful consideration.
The amount OF money annually exacted,
through thv operation Of present laws, frvm
the industries and necessities Of the people,
largely exceeds the sum necessary to meet the
expenses Of the government
When we consider that the theory Of our In
stitu,ions guarantees 10 every citizen the full
enjoyment OF all the fruits OF his industry and
enterprise, with only such deduction as may
pe mis- share towards the careful and economic
cal maintenance of the government which
protects him, II In plaiu that tho cxaction OF
more than this is indeiensible extortlon, and a
culpable betrayal Of American fairness and
justice. This wrong inflicted upon those who
beer the burden OF national taxation, like
other wrongs, multiplies brood OF evil Conse.
queDces. The public treasury, which should
only exist as conduit conveying the peoples
tribute to Its legitimate objects OF expenditure,
becomes u boarding place for money need.
lessly withdrawn from trade and the peoples
use, thus Gripping our national energies, sus-
ing ginvestment in productive enterprise, threat
enlng financial disturbance, and inviting
schemes of public plunder.
Thisscondition OF our treasury Is not ALTO
gether new; and It has more than once of late
teen submitted to the peoples representatives
In the Congress, VINO alone can apply rem.
edy. And yet the situation still continues,
with aggravated incidents, more than ever
disaster.
IL will not do 10 neglect this situation be.
cause its dangers are not now palpably immi-
nent and apparent. They exist none the less
certainly, and await the unfor cen and unex.
pecied occasion when suddenly they Will be
On the 3OIh day OF June, 1885, the excess Of
revenues oyer public expenditures, after co n
% sisGs n fund @ act % WINS s7 So during ia the the
year ended June 30, 1886, such excess amounted
TO ti9,d ,do5, 30 20; and during the year ended
June 30, 1887, 1t reached the sum of sos, $751;
s4954.
The annual contributions to the sinking fund
during the three years above specified, amount
dueted from thessurpus as stated, were made
by calling in for that purpose outstanding 3
per cent. bonds Of the government. During
The the SIX months prior TO June 30, 1881, tn. sur
eccumulations, and 1t was feared the with
drawal ofthis great sam of money needed by
the people would so affect the business Of the
country, that the sum OF S0S6t, 100 of such
surplus was applied to the payment of the
principal and interest of the per cent. bonds
Ell outsa9nding; and which was then payable
rious condition OF financial affairs among the
people still needing relief, Immediately after
with principal and interest to the sum of slS,.
sT7 800, were called In and applied 10 the sink.
ing fund contribution for the current fiscal
Treasury Department representations of dis
trees In business circles not only continued but
increased, and absolute peril seemed at hand.
once So ss9%Plsssd ~ ss Py
due Bearing four and four. "a. half per cent
interest, the premium paid thereon averaging
about twenty. four per cent, for the former aud
eight per cent. for the latter. In addition to
this the interest accruing during the current
year upon the outstanding bonded indebted
ness OF the government was 10 some extent
anticipated, and banks SELECTED as repositories
of public money were permitted to somewhat
increase their deposits.
While the expedients thus employed, to re
lease to the people the money lying idle Ia
the treasury, served to avert immediate
danger, our surplus revenues have continued
TO accumulate. the excess for the present
10 s55, ,25s, ,7Ol.i9, and estimated to reach the
tum OF sl13, 900 900 on the 30th Of June next, at
which date 1t is expected that this sum, added
toprior accumulations, W Ill swell the surplus In
hetTeasury to Sl40,000,00O
{ There seems To be no assurance that, with
such withdrawal from use OF the people s
circulating medium our business community
may not in the near future be subjected to the
tame distress which was quite lately produced
from the same cause. And while the func-
and simple, and while its best condition would
be reached, believe, by its entire disconneo-
tion with private business interests, yet when,
by a pcTyersion OF Its purposes, IL idly holds
money useless by substracted from the channels
oftrade there seems 10 be reason for the claim
that some legitimate means should be devised
by The government to restore iu an emergency,
without waste or extravaganza, such money T.,
its place among the people.
lfsuch an emergency arises there now exists
no clear ana undoubted executive power OF
relief Heretofore the redemption Of per
cent. bonds, which were payable at the option
Of the government, has afforded means for
the disbursement Of the excess Of ou., revenues
are no bonds outstanding the payment OF
which we have the right TO Insist upon. The
contribution to the sinking fund which furn-
isbes the occasion fol- expenditure in the pur.
chase of bonds has been already made for tho
direction.
In the present state of legislation the only
IIetense OF amy existing executive power to
restore, at this time, any part OF our surplus
revenues to the people by It's expenditure, con-
the Treasury may enter the market and pur-
chase the bonds of the government not yet
due, att rate of premium TO be agreed upon.
The only provision OF law from which such O
power could be derived Is found in an appro-
pIiation bill passed a number OF years ago;
and IL Is subject to the suspicion that II was
plicstion, instead of conierring a continuing
discretion and authority. No condition ought
10 exist which would justify the grant OF
It's necessity to Withhold from or release to
nSr, money held In the treasury, and thus
W
country; and If II is sdeemed wise to lodge in
the Secretary OF the Treasury the authority in
the present jnncture to purchase bonds. 1t
as possible with such checks and Limitation
as win define this officials right and discre
tion, and at the same time relieve him from
undue responsibility.
In considering the question of purchasing
bonds as q means Of restoring to circulation the
surplus money accomplishing in the treasury,
hGaa ~ 6g c6hs Se ns n na sns
that there may be a large part OF these bonds
held as Investments which cannot be pur
among holders who are willing to sell, may un
reasonably enhance the cost OF such bonds TO the
government.
1t has been suggested that the present bonded
debt might be refunded at a less rate OF inter-
ett, and the difference between the old and
new security paid In cash, thus finding use fol
the surplus In the treasury. The success OF
This plan, y Is apparent, must depend upon the
Volition Of the holders of the present bonds
and 1t is not entirely certain that the induce
nil In more financial bsne To hs
ment than the purchase OF bonds, while the
latter proposition would reduce the principal
OF the dept by actual payment, instead OF ex
The proposition to deposit the money held
by the government III banks throughout the
county, Sr use 6y ts PSS Is + seems
ettoblishing too close relationship between
the operations tho government treasury and
the business Oh tne country, ana 100 extensive
acomminglipg Of their money, thus fostering
an unnatural reliance in private business upon
public funds. If this scheme should be
adopted 1t should only be done as a Temporary
expedient TO meet an urgent necessity Legis-
lative and executive effort should generally
be in the opposite direction and should have
tendency 10 divorce, us much and as fast a
can safely be done, the Treasury Department
nom private enterprise.
or course 1t is not expected that unnecessary
and extravagant appropriations will he made
Tor INC purpose OF avoiding the aCcumua.ior
OF an excess OF revenue. Such expenditure
beside the Decentralization OF all Just concep
tions OF public duty which II entails stlmil
lales a habit OF reckless improydenGe not il